LogMein (NASDAQ: LOGM) is one of 183 public companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare LogMein to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for LogMein and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogMein 0 0 8 0 3.00
LogMein Competitors 744 4653 7408 167 2.54

LogMein currently has a consensus price target of $141.00, indicating a potential upside of 18.29%. As a group, “IT Services & Consulting” companies have a potential downside of 5.69%. Given LogMein’s stronger consensus rating and higher possible upside, analysts plainly believe LogMein is more favorable than its competitors.

Dividends

LogMein pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. LogMein pays out 909.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 37.7% of their earnings in the form of a dividend. LogMein lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares LogMein and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LogMein $336.07 million $2.63 million 1,083.73
LogMein Competitors $2.79 billion $290.02 million 325.23

LogMein’s competitors have higher revenue and earnings than LogMein. LogMein is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

99.3% of LogMein shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 2.5% of LogMein shares are owned by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares LogMein and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LogMein 1.01% 5.50% 4.23%
LogMein Competitors -20.53% -255.25% -4.33%

Risk & Volatility

LogMein has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, LogMein’s competitors have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.

Summary

LogMein beats its competitors on 8 of the 15 factors compared.

LogMein Company Profile

LogMeIn, Inc. provides a portfolio of cloud-based service offerings, which helps people and businesses to connect to their workplace, colleagues and customers. The Company’s core cloud-based services are categorized into four business lines: Communications and Collaboration; Engagement and Support; Identity and Access, and Additional Service Offerings. The Company’s communication and collaboration services include GoToMeeting; GoToTraining; GoToWebinar; join.me, join.me pro and join.me enterprise; OpenVoice, and Grasshopper. The Company’s customer engagement and support services include BoldChat; GoToAssist, GoToAssist Corporate and GoToAssist Seeit; LogMeIn Rescue, Rescue Lens and LogMeIn Rescue+Mobile, and Xively. Its identity and access management services include LogMeIn Central, GoToMyPC, LogMeIn Pro and LastPass. Its additional service offerings include LogMeIn Backup, LogMeIn Hamachi and RemotelyAnywhere.

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